Calculate the total overhead cost for all five departments

Reference no: EM133326057

Problem (a) Calculate the total overhead cost for all five departments.

Problem (b) Reapportion the cost of service department to all the production departments using:
(i) Direct method
(ii) Reciprocal method

Problem (c) Compute the overhead absorption rate for all three production departments using labour hour basis.

Problem (d) Briefly explain the reasons of not using blanket overhead rate.

Reference no: EM133326057

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